Gst Registration Process Step by Step
GST registration is mandatory for all individuals and businesses in India that offer products or services. GST registration is necessary when the entire cost of delivering items exceeds Rs. 40 lakh. The Ministry of Finance (MoF) has simplified the GST registration procedure to make the process of reporting taxes easier. GST registration is necessary if the value exceeds Rs. 20 lakh annually and the business is located in a state that falls under a special category. In this piece, let's look at the prerequisites for obtaining a GST registration. The post also touches on the online GST registration process and the required documents.
Key Facts about GST registration process step by step
Some important details of GST registration are included in the list below:
- The GST registration process may be finished for free.
- Businesses that fail to finish the registration process will be penalized 10% of the unpaid sum or Rs. 10,000. A penalty for tax evasion equivalent to 100% of the debt will be assessed.
- Businesses must register for GST if their annual income exceeds Rs. 20 lakh.
- GST registration is necessary for each state where the supply is made if it spans several.
If a business's yearly turnover reaches Rs. 40 lakh, it must register as a normal taxable entity in compliance with GST requirements. This is how the GST registration process works. The turnover for businesses in hill states and north-eastern states is Rs. 10 lakh. The GST registration procedure could be done in six working days.
GST registration is made simple using an online platform. Business owners can register by completing an online form on the GST website and uploading the necessary documentation. Businesses must complete the GST registration process. Without registering for GST, conducting business is illegal and has serious repercussions.
What is GST Registration?
The process by which a taxpayer registers for Goods and Service Tax is known as GST registration (GST). Upon successful completion of the registration procedure, the Goods and Service Tax Identification Number (GSTIN) is provided. The 15-digit GSTIN, which is provided by the Central Government, is used to help determine if a company must pay GST.
Who May Register Under the GST?
The following individuals and businesses must register for GST:
- people who signed up for tax services before the GST law went into effect.
- Temporary and Non-Resident Taxpayers
- Those that pay their taxes via the reverse charge method
- any businesses that aggregate internet stores and have yearly sales more than Rs. 40 lakh. In the states of Uttarakhand, Himachal Pradesh, Jammu & Kashmir, and the North-Eastern region, the company's yearly income must exceed Rs. 10 lakh.
- individuals that supply goods via an e-commerce aggregator are agents and distributors of a supplier's service personnel.
- Those who grant database access and online information to those who live in India from outside of India, except from people who are registered as taxable persons.
What are the Types of GST Registration?
Different forms for GST Registration are allowed per the GST Act. Before selecting on the best sort of GST Registration, you must be aware of your options. There are numerous GST Registration types, including:
Average taxpayer
This category encompasses the vast majority of businesses in India. You are not obliged to submit a deposit in order to become a regular taxpayer. Furthermore, there is no deadline for taxpayers in this category.
A Temporary Taxable Person
This option could be used by those who want to set up a temporary shop or stall. You are obliged to submit an advance payment equal to the expected GST liability while the stall or temporary store is open. The maximum period for this category's GST Registration is three months, although it can be renewed or extended.
Taxable Non-Resident Individual
If you live outside of India but sell goods to individuals who live there, pick this type of GST Registration. While the GST registration is active, you must pay a deposit equating to the expected GST liability, much like the Casual Taxable Person category. The average duration of this type of GST registration is three months, although when the expiration date draws near, it may be renewed or extended.
What conditions must be met before applying for GST registration?
The types of GST registrations and their specifications are listed below:
Integrated turnover
Any service provider who supplies services for a total annual value of more than Rs. 20 lakhs must register for GST. In states that come under the special category, this maximum is set at Rs. 10 lakhs. Any company with a combined yearly income of more than Rs. 40 lakhs that exclusively sells goods is required to register for GST.
Business between states
Any business that supplies goods over state borders or from one state to another must register for GST, regardless of their entire annual revenue. The only companies required to register for GST are those that do interstate commerce and have an annual turnover of more than Rs. 20 lakhs. There is a maximum of Rs. 10 lakhs (in states that fall under a specific category).
Online Store Platform
Anyone who supplies products or services through an online marketplace is required to register for GST. The person is required to register regardless of turnover. As a result, businesses must register in order to begin selling on Flipkart, Amazon, and other e-commerce sites.
Taxable Individuals
Anyone who engages in seasonal or irregular supply of goods or services through a temporary stall or store is required to register for GST. Regardless of the entire yearly turnover, the person must apply.
Voluntary enrolment
Any business can freely sign up for GST. It used to be impossible for any organization to revoke its voluntary registration for GST for up to a year. However, after revisions, the applicant may at any moment remove their voluntary GST registration.
Guide to the Online GST Registration Process
The MoF has simplified the steps involved in registering for GST online. The applicant may finish the GST registration procedure via the GST Portal. As soon as an application is filed, the website generates a GST ARN. Using the GST ARN, the applicant may keep track of the progress of their application and, if required, post inquiries. Within seven days of the ARN's production, the taxpayer must get a
Step 1: Utilize the GST Portal.
Choose the Services > Registration > New Registration option on the GST Portal at https://www.gst.gov.in.
Step 2: Make a TRN by finishing OTP Validation.
The new GST registration page is displayed. Select the New Registration option. If the GST registration application is still pending, the applicant must proceed with the application using the TRN number.
- From the list of options, pick the right type of Taxpayer.
- Choose the state based on the requirements.
- Enter the legal name of the business or other entity as it appears in the PAN database. Because the site quickly examines the PAN, the applicant should provide the information exactly as it appears on the card.
- Enter the PAN of the company or the owner in the Permanent Account Number (PAN) field. PAN and GST registration are related. Enter the company or LLP's PAN if it is a company or LLP.
- PROCEED can be chosen from the menu.
Step 3: TRN and OTP generation
The OTP Verification screen displays when the aforementioned data is entered. The OTP will expire in only 10 minutes. To confirm the email address and mobile number, enter the two different OTPs that were provided.
- Fill out the Mobile OTP field with the OTP.
- In the Email OTP box, type the
Step 4: TRN Generated
If the OTP verification is successful, a TRN will be generated. TRN will now be utilized to complete and submit the GST registration application.
Step 5: Log in with TRN
Once they have their TRN, the applicant must begin the GST registration procedure. In the Temporary Reference Number (TRN) field on the GST Portal, enter the generated TRN and the captcha text precisely as they appear on the screen. Verify your email and phone with the OTP.
Step 6: Business Data Submission
A particular amount of information must be provided in order to obtain a GST registration. The first tab has to be filled up with information about the company.
- In the Trade Name field, type the company's trade name.
- From the drop-down menu, pick the Business Constitution, and then type it in.
- Select the District and Sector/Circle/Ward/Charge/Unit from the drop-down list.
- Select the appropriate choice from the drop-down options for the Commissionerate Code, Division Code, and Range Code.
- Select the composition scheme if necessary.
- Enter the company's launch date.
- Pick the day when you become required to register. On this day, the business met the threshold for total turnover necessary for GST registration. Taxpayers are required to file a fresh GST registration application within 30 days of the day on which they become required to register.
Step 7: Provide Information
In the following tab, provide information for producers and directors. In situations of proprietorship, information about the owners must be supplied. Up to ten Promoters or Partners may be listed in an application for GST registration.
The following details must be sent to the promoters:
- The stakeholder's name, date of birth, address, phone number, email address, and gender are a few samples of their personal information.
- the advertiser's name
- The Promoter's DIN may only be used for the uses listed below:
- Private Limited Company Unlimited Company Public Limited Company Public Sector Undertaking
- Information about citizenship for foreign companies with offices in India
- home address and PAN in Aadhaar
- When filing GST returns, the applicant may use Aadhaar e-sign rather than a digital signature if they have provided Aadhaar.
Step 8: Identify the authorised signatories.
An authorised signatory is a person chosen by the company's promoters. The designated person is in responsibility of submitting the GST returns on behalf of the company. The person must also maintain compliance for the company as necessary. The authorised signature will have full access to the GST Portal. The person will conduct a number of business dealings on the promoters' behalf.
Step 9: Primary Place of Business
In this area, the applicant must outline the principal place of business. The Principal Place of Business is the location where the taxpayer conducts the majority of its operations inside the State. It frequently refers to accounting records and books. Therefore, the company's or LLP's registered office serves as its principal place of business.
For the primary business location, include the following data:
- The primary business location's address.
- Examples of official contact information include an email address, phone number (including STD Code), mobile number field, and fax number (with STD Code).
Step 10: Added Locations for Businesses
When your company opens a second location, update this page with details on the building. For instance, if the applicant sells on Flipkart or another e-commerce site and uses the seller's warehouse, that location might be included as an additional place of business.
Step 11: Information about products and services
The top five products and services that the application offered in this category must be listed by the taxpayer. Give the HSN code for the commodities that were delivered and the SAC code for the services that were performed.
Step 12: Bank Account Information
In this field, indicate how many bank accounts the applicant has. If there are five accounts, enter 5. Then provide the account details, such as the account number, IFSC code, and account type. Last but not least, fill out the area provided with a copy of your wallet or bank statement.
Step 13: Assessment of the Application
At this point, before submitting the application, double-check the information you supplied. Once verification is complete, tick the verification box. Under the Name of Authorized Signatory, select the appropriate name from the drop-down menu. Visit the spot where the form was completed. Finally, digitally sign the application using a Digital Signature Certificate (DSC), E-Signature, or EVC. LLPs and businesses are required to use a DSC digital signature.
Step 14: ARN Created
After the application is signed, a success message appears. The acknowledgement must be sent to the registered email address and mobile phone number. The Application Reference Number (ARN) receipt is sent to the provided email address and mobile phone number. The GST ARN Number can be used to keep track of the application's development.
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